With
billet supply unable to cover demand, serious
billet shortages have emerged lately in the local Iranian steel market and the shortages are expected to continue for a while amid the current domestic economic conditions.
The local Iranian long steel market has been negatively affected by limited
billet availability and ongoing problems in
Iran's
billet supply channels resulting from the influence of international economic sanctions against
Iran and the Iranian government's exchange rate policy. While import activities for
billet are drying up in
Iran, local long steel mills are waiting for the government to become more active and to support
billet imports.
While Iranian long steel producers are working at the minimum capacity due to
billet shortages, at Anzali port near the Caspian Sea
billet prices are at $870-880/mt loaded truck, excluding five percent VAT.
Rising import
billet prices amid increasing energy costs, fluctuations in exchange rates and economic sanctions against
Iran have also caused production costs to move up in the Iranian steel market.